#48 Metaverse fashion shows by Hermès. Ticketmaster to Start Offering NFT Event Tickets.
Disclaimer: Everything we write in "The Crypto Insider Report" is an x-ray of the industry as we see it, through the lens of publicly available information. We are not financial advisors.
Helium’s Proposal to Shift to Solana
Helium is a blockchain based network supporting Internet of Things devices. People (hence The People’s Network) install low-power routers in their homes, offices or any place they have access to, and offer worldwide coverage to developers needing Internet access for IoT projects (think sensors, smart cities, micromobility etc.). In turn, they earn revenue from the network. Pretty cool.
What has this to do with blockchains? Well, to ensure the node operators actually provide the service in the areas they claim to, Helium has developed a mechanism called Proof of Coverage which operates via challenges emitted by nodes using RF (radio frequency), challenges which lead to proofs stored on a blockchain. To achieve this, Helium developed its own Layer 1.
Years after Helium’s release, the Layer 1 landscape is completely different. There are several options that are fast and work well with lots of small transactions. As such, Helium developers created a new proposal for migrating the project to Solana’s blockchain, in an attempt to focus their efforts on the Helium’s value proposition instead on maintaining and developing a competitive blockchain (which is not exactly trivial, as you probably know by now). In addition, CoinDesk mentions that this move could unlock further synergies such as using Helium for Solana’s upcoming Saga smartphone.
I find this important not just for the technical challenge behind migrating a live project from one blockchain to another (ETH Merge vibes), but also because it is a case of consolidation in the blockchain space. You see this in the traditional world all the time, with things like automakers sharing platforms and factories to cut R&D as well as manufacturing costs. I would wager that as the space grows and bigger players emerge, we will see more of this.
Mihnea
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Treasury management tips by a16z
In a recent article, the a16z crypto team has provided a short guide on treasury management, commenting on specifics related to traditional startups or DAOs. It is more principles-focused than analytical-oriented.
A. Calculate monthly cash burn
Teams ought to keep track of projected inflows and outflows on a monthly basis. The relevant metric (“cash burn” or “burn rate”) represents the difference b/w how much a project is expected to spend each month vs. how much it is expected to earn. The analysis should specify the component parts that drive both earning and spending. Conservative assumptions are preferred given parts of the revenue (even if currently recurring) may be affected in a market downturn. While there are some differences between DAOs and traditional startups, as the former evolve and take on more sophisticated operating structures, it is key that they too have visibility into their overall financial health. This will ensure they can meet operating expenses as they come due, including contributor payments or incentive programs. MakerDAO has a dashboard with an ongoing cash burn analysis.
B. Maintain operating expenses in cash
Once the rate of cash burn is determined, next in line is the treasury management plan. It has three key objectives: capital preservation, liquidity and income. 12-to-18 months coverage of near-term operating expenses have to be critically assessed, diversification (but on a project-by-project basis), having a stablecoin stash and managing cash appropriately are key.
C. Develop plan for additional capital
Depending on the state of the project, teams can explore different opportunities for incremental yield. The team provides a template for this.
D. Build out operational capacity
The article includes a software stack for DAOs to take into account if they want to use them in their operating decisions. There are tools for voting (Snapshot, Tally), community discussion (Discourse or Commonwealth), on-chain analytics (Nansen, Dune) or payroll management (Coordinape, Utopia). Also, there are crypto-native firms that do consulting activities like Reverie, Gauntlet or Llama.
E. Monitor and make adjustments as necessary
Teams should actively monitor their cash positions and adjust their strategies as necessary.
Razvan
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Metaverse fashion shows by Hermès
Following the filing of a trademark application covering NFTs, crypto, and the Metaverse, luxury brand Hermès is setting the basis for its entry into Web3.
The patent covers downloadable software to view, store, and administer virtual items, digital collectibles, cryptocurrencies, and NFTs "for use in online worlds," according to a filing sent to the USPTO on August 26.
Also trademarked were "retail shop services featuring virtual products," "offering an online marketplace for consumers and sellers of virtual goods," "fashion and trade fairs in online virtual, augmented, or mixed reality environments," and "retail store services featuring virtual goods."
Following the filing of a lawsuit against Mason Rothschild, the founder of Metabirkins, in January for allegedly utilizing the name of the brand, Birkin, to profit from sales and resales for his NFT Metabirkins collection, a fresh trademark application has been made.
One of the possible causes for the company's decision to submit its own safeguards, which would cover the Metaverse, cryptocurrency, and NFT-related goods and tokens, is the lawsuit against Rothschild.
According to NFTGators, Dune Analytics data revealed that large brands made almost $264 million from NFT sales. Nike, Dolce & Gabbana, Tiffany, Gucci, Adidas, Budweiser, Time Magazine, Bud Light, AO, Lacoste, Nickelodeon, and McLaren are just a few of the names on this list.
Many investors and tech experts believe that the NFT business has a promising future, despite the fact that there are various projections for the future of NFTs.
According to respondents in a recent CoinGecko study, the NFT market's worth might exceed $800 billion over the next two years, as Cointelegraph reported. On the other hand, older research predicts that by the end of the decade, the NFT market will be worth $230 billion.
Axel Dumas, the chairman of Hermès' executive board, stated at the most recent annual general meeting of shareholders on April 22 that while the company will continue to place a strong emphasis on passing down handicrafts, it will also take into account the possibility of using "Metaverse" in the future for communication and publicity.
We are intrigued by the Metaverse, he added, adding that it might be a useful instrument for communication. Time will tell!
Cosmin
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Ticketmaster to Start Offering NFT Event Tickets
According to Flow, a digital engagement layer-1 blockchain created by Dapper Labs, Live Nation's subsidiary Ticketmaster has unveiled non fungible tokens (NFTs) tickets for event organizers minted on its blockchain. The primary purpose of the NFT tickets will be for commemorative value. But aside from being used as mementos, they can also be used as proof of attendance.
Live Nation has explained that they picked the Flow blockchain based on its eco-friendly nature, as creating an NFT on Flow is supposed to use less energy than doing a Google search or making an Instagram post. In November, the ticketing firm launched a deal with the National Football League (NFL) to offer collectible NFTs. Ticketmaster says it has minted five million NFTs on the Flow blockchain.
“Event organizers who choose to offer fans an NFT with their ticket have a real opportunity to make this new technology relevant and relatable at scale,” said Brendan Lynch, Ticketmaster EVP of Enterprise & Revenue. Earlier this month, it was predicted that Ticketmaster was planning an NFT expansion after a job posting for an NFT-related role that reports to the ‘General Manager of NFT Ticketing’.
So far, Ticketmaster is solely interested in the collectible aspect of NFTs as opposed to the potential to use blockchain technology for anti-counterfeiting. Additionally, Michael Rapino, Live Nation CEO said, “We’ve all learned from Top Shot at the NBA. So we envision Live Nation with the marketplace and looking at some of the concert moments as magic moments that we could mint and attach to our ongoing ticket festivals and special moments.”
Evelyne
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For more educational crypto content, check out the links below:
The Stakeborg DAO Talks on YouTube: https://www.youtube.com/playlist?list=PLOrFZZifNn4Nx4nSQL3WS52ALPXgrTSVG
Discord channel: https://discord.com/channels/901898461568442458/903006233584341052
StakeborgDAO Quarterly Reports: https://docs.stakeborgdao.com/reports/dao-quarterly-reports
Stakeborg Academy: https://academy.stakeborg.com/
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